Accounting Information For Everyone

Make In India

Manufacture in India and sell the products worldwide

A) BACKGROUNDS

After the Jan Dhan Yojna, PM Narendra Modi, in his I-Day speech launched a new scheme to boost the manufacturing sector and foreign investors with an invitation to the world with “come, make in India”. Thus initiating Make in India & “Zero Defect; Zero Effect policies.

Logo is striding lion made of cogs that symbolize strength & manufacturing, different lions made of different things to symbolize different sectors, designed by the agency Wieden & Kennedy.

Key Elements:

• 25 sectors to work on initially
• 24 manufacturing cities identified
• 10% subsidy on production of equipments of pollution control, reducing energy consumption & water conservation
• To speed up the decisions
• Time bound resolving of issues within 48 hours; unaddressed queries to go to DIPP secy, & to be resolved within 24 hours.
• A digital campaign just like “Incredible India to go global.
• Inclusion of all states to mobilize the policy, ministries and local bodies

FROM AUTOMOBILES TO AGRO-PRODUCTS FROM HARDWARE TO SOFTWAREFROM SATELLITE TO SUBMARINES FROM TELEVISIONS TO TELECOM FROM PHARMA TO BIOTECH FROM PAPER TO POWER PLANTS FROM ROADS TO BRIDGESFROM HOUSES TO SMART CITIES FROM FRIENDSHIPS TO PARTNERSHIPS FROM PROFIT TO PROGRESSWHATEVER YOU WANT TO MAKE: MAKE IN INDIA.

• Assistance to foreign investors:- from the time of their arrival in the country to the time of their departure.Focus on green and advanced manufacturing.
• Proactive approach:- A pro-active approach, to track visitors for their geographical location, interest and real-time user behavior.
• Invest india cell:- Investors to be responded within max. 72 hours.
• Ease of doing business:- New delicencing and deregulation measures to reduce complexity & increase speed and transparency.
• Manufacturing sector to be focused:- Create Jobs, Move people out of Agriculture & Spur Services, reduce exports/increase imports & bring balance of trade.
• 125000 New Jobs Born in 1 Year.
• Small Industry Play Big Roll.
• Global company start business in India.
• High-Tech Technology Comes To India.
• Industry and government to work together.

PMO’s list of few steps for ease of doing Business.

• Unique identity number – A unique identity number for all firms and three forms instead of 17 for imports and exports.
• Ambitious goal of moving India from 142nd to the 50th slot in the EoDB ranking list
• Ownership reform process – Each secretary was asked to take ownership of the reform process
• Online approvals and clearance processes
• One-stop shop and prepare a common application form
• Reduce the number of inspections, a key concern with the industry .
• All licenses for export and import, including for restricted items, will be issued online from January.
• Providing electricity connections in the two cities – Will be made easier
• Environment ministry to do away with pollution control certificate as a prerequisite for a connection.
• Standard sale deed – The ministry of urban development has been asked to prepare a standard sale deed to ease the registration process for land.
• Land resources department for digitization of land records, municipal tax records, sub- registrar data and also integrate them
• Single window set-up to integrate all activities – Several initiative have been lined up at ports, including a single window set-up to integrate all activities of agencies involved in the clearance of consignments.
• Simplify the laws and forms – The revenue department has also been asked to simplify the laws and forms for corporation and dividend tax.
• Simplify the Companies Act, including a simpler process for registration of companies.
• Reduction in the number of customs forms
• One identity number instead of multiple IDs such as Permanent Account Number, Tax Deduction Account Number (TAN), corporate identification number (CIN) and Labour Identification Number. The corporate affairs ministry , CBDT, Employees Provident Fund Organisation ( EPFO) and Employee State Insurance Corporation (ESIC) will integrate their processes and issue the numbers real time.
• Work on an insolvency law – Apart from this, given India’s low ranking on winding up and insolvency laws, PMO has indicated that work on an insolvency law should start soon after the Vishwanathan committee submits its report in February .
• Similarly , the attorney general is being asked to request the Supreme Court to clear the constitution of the National Company Law Tribunal and notification of the relevant provisions of the Companies Act, 2010.
• Form special courts to settle commercial disputes in Delhi and Mumbai

Challenges

• Existing stringent procedural and regulatory clearances: a business-friendly environment will only be created if India can signal easier approval of projects and set up hastle-free clearance mechanism.
• High Tax Rates : To make the country a manufacturing hub the unfavorable factors must be removed. India should also be ready to give tax concessions to companies who come and set up unit in the country.
• Need of focus on MSME Sector: MSME can play a big role in making the country take the next big leap in manufacturing. India should be more focused towards novelty and innovation for these sectors. Special sops and privileges should be given.
• Competition from China: Make in India is being constantly compared with Made in China campaign. India should constantly keep up its strength so as topace china’s supremacy in the manufacturing sector.
• To increase Imports and R & D: High-tech imports, research and development (R&D) to upgrade ‘make in India’ should be encouraged. Should be better prepared and motivated to do world class R&D with Govt.‟s support.